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We file Income Tax Return by assessing our income on the basis of income received. However, there are chances of minor or major discrepancies depending upon how we report our income or losses. In this situation, Notice under section 143(2) comes into the picture. As we also deserve a chance to correct or justify ourselves. A Notice under section 143(2) is a chance provided by the Income Tax Department to defend them and clear out the irregularities with the supporting documents. Also, note that failure to reply to this notice may lead to severe circumstances.
Table of Contents
Notice under section 143(2) means the income tax return filed by you has been taken by the assessing officer for scrutiny assessment or detailed assessment under section 143(3)
In simple words, Scrutiny Assessment or Detailed Assessment means scrutiny is being carried out to confirm the correctness or genuineness of the various deductions or claims made, etc. while filing your Income Tax Return. However, the basic purpose is to ensure that the income tax return is filed showing correct income.
Objective of Scrutiny
A Notice under Section 143(2) for scrutiny assessment shall be issued up to a period of six months from the end of the financial year is the year in which the return is filed.
Mr. Rahul has filed his return on 25.07.2018 for the financial year 2017-2018.
In this case, notice under section 143(2)
shall be issued to Mr. Rahul only up to 30.09.2019 for the financial year
Step 1: A notice u/s 143(2) is issued by the Assessing
Officer within 6 months from the end of
the financial year in which return was filed to carry out scrutiny of your
income tax return u/s 143(3)
Step 2: You or your representative will appear
before the Assessing Officer to place your arguments and evidence as required by him.
Step 3: After considering all explanations and evidences a final order under section 143(3) is issued to tax payable or tax refundable
There are 3 types of notices issued under section
If you receive the notice and you do not comply
with the same in such a case, you will be liable to penal consequences as
Read our article:File the Income Tax Refund with the Help of Experts
1. What is the final order under Section 143(3)?
If a notice is issued under section 143(2) and upon
receiving the notice the Assesse produce to the AO, the required and supportive
evidence then the AO will make the
assessment of the total income or loss and determine the tax payable or
refundable by passing an under section 143(3)
2. Is there any time limit for issuance of an order under section 143(3)?
The AO has to issue the final order with 21 months
from the end of the relevant assessment year. This is the latest amendment
applicable from A.Y.2017-2018. Previously it was of 2 years.
3. How will you receive notice under section 143(2)?
Generally, the Notice under section 143(2) is
issued via email in the PDF format registered with the Income Tax Department. Also, it is also sent to your Postal Address.
4. If I have not filed any return can I get a notice under section 143(2)?
No, since no return is filed you cannot receive notice under section 143(2). However, in certain cases, AO can first issue a notice under section 142(1) asking you to file Income Tax Return. In such a case if you fail to respond AO can issue “Best Judgment assessment under Section 144.
5. Received a Scrutiny Notice under Section 143(2)?
Receiving a Notice from the Department is not a good surprise. But the concern is to respond and reply to it time to avoid penal consequences. To ensure a 100% solution to your notice consult our team of experts to get instant Reply, Contact Enterslice.
Read our article:Know About the Filing of Income Tax Return
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